Peace set to break out in Royal Mail dispute as staff offered 7% pay boost

Published on Monday 8 March 2010 21:42

A DEAL that could end the acrimonious dispute between postal workers and the Royal Mail was agreed yesterday, with staff being offered a pay rise of 6.9 per cent over three years.

• Members of the PCS union picket the Scottish Parliament at Holyrood yesterday. Picture: Neil Hanna

Under the deal, Royal Mail workers would also get lump-sum payments of up to 2,500, as well as better rates of maternity and paternity pay, in return for delivering a wide-ranging "transformation" of the business.

The agreement, which has been two months in the making and will now be subject to a ballot of CWU members, could end the threat of further industrial action after the series of strikes staged last year.

The 80-page agreement was hailed by the union and Royal Mail management, but the CBI warned the attractive terms could risk industrial action elsewhere.

Under its terms, the working week will be cut by one hour to 39 hours for the majority of postal workers, and at least 75 per cent of staff will be maintained as full-time, with no forced move for any worker from full-time to part-time, or vice versa. Maternity pay will increase from 18 to 26 weeks and paternity pay from one to two weeks. Saturday will remain a normal working day for deliveries but with the opportunity for more weekends off.

Dave Ward, the CWU's deputy general secretary, said: "It's been a long time coming, but this deal delivers on the major issues which postal workers have fought for. There's a balance of pay and operational changes which will help offset job losses and ensure our members are fairly rewarded for change."

Royal Mail chief executive Adam Crozier, said: "This agreement is good for the business, as it allows Royal Mail to get on with its modernisation, it's a good and fair deal for our people, and it's a good deal for our customers, as it ensures stability over the next three years."

David Lonsdale, assistant director of CBI Scotland, said he was not surprised the union had decided to accept the latest proposals. "In this economic environment, that is a good deal," he said.

But he warned: "There is a risk, if that was to spread elsewhere in the economy in terms of demands from employee representatives. At the end of the day, it has to be affordable and it has to be sustainable for whichever business faces these kinds of demands."

The settlement came as thousands of public sector workers in Scotland walked out as part of a 48-hour, UK-wide strike by the Public and Commercial Services (PCS) union in a dispute over changes to civil service redundancy terms.

The Scottish Parliament, courts, job centres, tax offices and the Scottish Government were among bodies affected by the strike that involved up to 200,000 workers in the UK, and more than 90 per cent of the PCS's 30,000-strong Scottish membership. They are striking over claims workers could lose up to a third of their redundancy entitlement under UK government changes.

In Edinburgh, about a dozen pickets gathered outside the Scottish Parliament holding placards. Striking staff also picketed other public buildings around the country, including Edinburgh Castle.

Courts, museums and offices of UK-wide departments such as the Ministry of Defence were also picketed, but little disruption to services was reported. The Scottish Government said 1,277 of its 7,500 workforce walked out, and the Scottish Parliament said 200 of its 500 staff had joined the action, a move that has seen today's parliamentary committee sessions cancelled at the request of the respective conveners.

The Scottish Court Service said 429 staff – just over a quarter of the total workforce – went on strike. A restricted service was in place in some locations, while Stonehaven court did not open at all. A spokesman insisted courts ran "as normal" in most areas.

Historic Scotland said that 18 of the organisation's 1,088 staff were out on strike and none of its properties had closed down.

Some 247 Crown Office staff walked out, alongside almost half of the 1,300 staff at the Registers of Scotland.